The Loan Estimate is a standardized disclosure required by the TILA-RESPA Integrated Disclosure (TRID) rule. Lenders must provide it within three business days of receiving a loan application. It shows the interest rate, monthly payment, closing costs, cash to close and other key terms in a format that makes offers easy to compare.
The Loan Estimate is what replaces any calculator's estimate with real figures. Encouraging buyers to get Loan Estimates from more than one lender, and to compare them line by line, is good advice that doesn't stray into lending advice.
Example: a buyer applies with two lenders on Monday and receives both Loan Estimates by Thursday. Page 2 shows one lender's origination charges at $1,200 and the other's at $3,400.
No. It discloses the terms a lender expects to offer based on the application. Approval comes after underwriting.
Yes, and comparing them is one of the best ways to shop for a mortgage.
Calculators with built-in definitions, free on the Agent plan.